GOLD: Technical outlook and review.

Weekly Timeframe: The weekly timeframe shows active buying interest is currently being seen out of a weekly demand area at 1156.70-1194.45. Could this be the right time to be looking for buying opportunities?

Daily Timeframe: Price has now broken into a zone where we believe most of the selling opposition has already been consumed (prominent consumption wicks seen at 1222.41/1231.18). With this in mind, we see very little stopping price from trading at least up to the daily supply area coming in at 1241.95-1235.34. However, as always, before this area of supply is hit, we must be prepared for a reversal down to around the 1206.49 area, which if we’re not mistaken is now a Quasimodo support area. This will very likely become much clearer once we move on to the
4hr timeframe.

4hr Timeframe: The recent developments on the 4hr timeframe show that the small 4hr supply area seen at 1215.24-1211.29 has been well and truly consumed now. This in our opinion clears the path north up to the 4hr supply area seen at 1239.37-1233.79 (active sell orders are likely set just below at 1233.01), which is conveniently located just within the daily supply area mentioned above at 1241.95-1235.34. The reason for price being able to trade that high is simply because (exactly the same as the daily timeframe analysis) history shows that supply has already likely been consumed. The consumption wicks however are far clearer on this timeframe (shown with blue arrows at 1222.41/1231.18) than on the daily timeframe .

As already pointed out in the daily-timeframe analysis, we have to be prepared for a reversal before higher prices are seen (in this case) down to at least the 4hr Quasimodo support area coming in at 1204.42-1206.24 (active buy orders likely set just above at 1207.01). We very much doubt this will happen, and the only reason it will do in our opinion is if the buyers run out of sellers to buy into!